Tesla clarifies ‘federal tax credit phase-out’ situation for its buyers in US Market

Tesla clarifies ‘federal tax credit phase-out’ situation for its buyers in US

In a new blog post, electric vehicle maker Tesla Motors has issued a clarification about the ‘federal tax credit phase-out’ situation for its buyers in the US. The clarification has come within weeks of Tesla having hit the phase-out threshold of ‘200,000 vehicles delivered’ in the country in July 2018.

In its blog post, Tesla has mentioned that, since the year 2010, a federal tax credit of $7,500 is available to buyers of all qualifying electric vehicles (EVs), including Tesla’s vehicles, in the US. The company further explained that the credit gradually starts phasing out for EV manufacturers once the sales of their vehicles surpass the ‘200,000 units’ mark.

With Tesla having already confirmed in July that it has delivered 200,000 EVs in the US, the automaker said in its blog post that buyers “who want the full $7,500 tax credit will need to take delivery of their vehicle by the end of this year.”

Thereafter, the federal tax credit will gradually phase out for Tesla buyers in 2019, though it will exist in some form during the year. By the end of 2019, the tax credit will end completely.

In its clarification of the federal tax credit situation as of now, Tesla also said that a new bill proposed in Congress attempts to extend the EV tax credit by removing the delivery limit for the tax credit and replacing it with a time limit.